China Reiterates Cyrpto Bans from 2013 and 2017

Regulators cite the dangers of speculative trading

Article by: Muyao Shen

The National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China reiterated their stance on banning crypto services.

The three entities published a note Tuesday confirming bans originally implemented in 2013 and 2017 that bar financial and payment institutions from providing any services related to cryptocurrency transactions and saying that initial coin offerings remain illegal.

“Virtual currency’s prices have soared and plummeted recently, resulting [in] a rebound of speculative trading activities of virtual currency,” the report said. “It has seriously damaged the safety of the people’s investment and damaged the normal economic and financial orders.”

In 2013, China’s central bank barred financial institutions from handling bitcoin (BTC, +3.35%)transactions, according to a notice from China Securities Regulatory Commission.

And then again in 2017, the central bank in China declared initial coin offerings as illegal, which caused bitcoin’s price to fall.

Robert’s two cents: The last line of this article assumes that was the cause of the price fall. Yet, there is no proof supporting this claim. Its highly possible, in fact more probable, that the market correction with BTC has more to do with its volatility during its growth phase rather than simply one or two persons speaking out against it. This is a fallacious presumption.